Section 14-22.003 - Rating the Applicant(1) Verification of Information. The Department will make such inquiries and investigations as deemed necessary to verify and evaluate whether the applicant is competent, responsible, and possesses the necessary financial resources to perform the requested work based upon the following: (a) Organization and management, including construction experience and past work performance record of the applicant, or applicant's employees, whether with, or prior to their employment by the applicant, including deficiency in quality of completed work, any history of payment of liquidated damages, any untimely completion of projects where liquidated damages were not paid, uncooperative attitude, contracts litigation, claims, unpaid bill(s), notices of non-payment filed by subcontractors or suppliers, or defaults in the State of Florida or other states.(b) Equipment as shown on the equipment list for the requested classes of work. Adequate equipment shall be basic equipment used by the industry in normal construction for each class of work, or called for in the Standard Specifications for Road and Bridge Construction in force at the time of application.(c) Integrity, including evaluation of truthfulness of statements in the application or other contractual documents.(d) Financial resources sufficient to establish a Maximum Capacity Rating (MCR) as set forth in subsection (2) below. The Department will consider any other relevant financial information.(2) Maximum Capacity Rating (MCR).(a) Definition and Formula. The MCR shall be the total aggregate dollar amount of uncompleted work an applicant may have under contract at any one time as prime contractor and/or subcontractor, regardless of its location and with whom contracted. The MCR shall be established by the Department by multiplying the Ability Factor by the Current Ratio Factor, multiplied by the Adjusted Net Worth (MCR=AF x CRF x ANW) and consideration of the general qualification factors listed in subsection 14-22.0041(1), F.A.C.1. Ability Score. a. New applicants and applicants who have not been qualified under this rule for more than two years shall have their Ability Factor determined from the total Ability Score resulting from evaluations of the applicant's organization, management, work experience, and letters of recommendation. The maximum values used in determining the ability score for the above applicants are as follows: ABILITY SCORE |
Organization and Management | Maximum Value |
Experience of Principals | 15 |
Experience of Construction Supervisors | 15 |
Work Experience | |
Completed Contracts | |
Highway and bridge related | 25* |
Non-highway and bridge related | 10 |
Ongoing Contracts | |
Highway and bridge related | 25* |
Non-highway and bridge related | 10 |
TOTAL | 100 |
*Maximum value shall be increased to 35 if applicant's experience is exclusively in highway and bridge construction. |
b. If the applicant has been qualified under this rule within the last two years, and three or more Contractor Past Performance Reports are on file for projects completed for the Department within five years of the application filing date, and have not been previously used to determine an Ability Score, the applicant's Ability Score shall be calculated by adding the scores of these reports plus the average score from the previous application and dividing the sum by the number of scores used. Contractor's Past Performance Reports shall reflect the applicant's organization, management, and demonstrated work performance, including work sublet to others, as set forth in Form 700-010-25, Rev. 09/05, http://www.flrules.org/Gateway/reference.asp?No=Ref-03122 hereby incorporated by reference.c. If the applicant has been qualified under this rule within the last two years, and the Department does not have three or more Contractor Past Performance Reports on file for projects completed for the Department within five years of the application filing date, then the Ability Factor (AF) from the applicant's last successful application shall be brought forward and used.d. The average Ability Score determined in a. or b. above is converted to an AF pursuant to subparagraph 14-22.003(2)(a) 2., F.A.C., or is brought forward as indicated in sub-subparagraph c. The AF is then used in the formula as described in paragraph 14-22.003(2)(a), F.A.C., to compute the applicant's MCR.2. Ability Factor. The Ability Score for new and active applicants shall determine the AF as follows: Ability Score | AF |
64 or less | 1 |
65-69 | 2 |
70-73 | 3 |
74-76 | 4 |
77-79 | 5 |
80-84 | 8 |
85-89 | 10 |
90-93 | 12 |
94-97 | 14 |
98-100 | 15 |
a. Notwithstanding the requirements in paragraph 14-22.003(2)(a), sub-subparagraphs 14-22.003(2)(a) 1.a., b., c., d. and subparagraph 14-22.003(2)(a) 2., F.A.C., the AF will be limited to a maximum of 4 if the applicant receives an ability score of 76 or less on the initial application, receives an ability score of 76 or less on two or more Contractor Past Performance Reports for projects on file and completed during the 12 month period preceding the applicant's fiscal year ending date for which the Certificate of Qualification is being issued, unless the applicant's average ability score (inclusive of all scores received during the period) is 87 or greater. The use of a surety commitment letter to raise the MCR is prohibited.b. The AF limitation will remain in effect during the current qualification period.3. Current Ratio Factor (CRF). The current ratio is the number resulting from dividing the adjusted current assets by the adjusted current liabilities. The calculated current ratio from 0.60 up to a maximum of 2.00 will be used as the CRF. The maximum current ratio of 2.00 will be used for the CRF, even if the actual value is greater. The applicant will be denied qualification if its calculated current ratio is less than 0.60.4. Adjusted Net Worth (ANW). The ANW must be a positive value for the applicant to be considered for qualification. The ANW used in the MCR formula will be the amount of capital and surplus (net worth) as adjusted.5. The following adjustments shall be applied in the establishment of the CRF and ANW:a. The value allowed for equipment shall be the book value or 50 percent of actual value given by a qualified equipment appraiser, whichever is greater. Equipment appraisals must be dated no earlier than six months prior to receipt of the application.b. The value allowed for real estate used for business purposes (road, bridge, or public transportation construction) shall be: the book value or the value given by a qualified real estate appraiser, real estate appraisals shall be dated no earlier than two years prior to receipt of the application is filed, less encumbrances against same, such encumbrances will not also be deducted elsewhere.c. No value will be allowed for investments, including long-term held-to-maturity securities, for real estate, or for any other property not used in road, bridge, or public transportation construction. No allowance shall be given for homesteads or personal property. Encumbrances against these assets shall be eliminated entirely.d. Assets of doubtful value are recorded transactions that, based upon the known facts and circumstances, do not lead to the realization of value for use in the contractor's operations in the current operating period. These assets shall be eliminated in part or entirely.e. Contingent liabilities are debts or obligations that would require the use of the contractor's resources within the current operation period, given that certain events take place in the future. These shall be treated as actual liabilities, wholly or in part, depending on the probability of such liabilities becoming actual liabilities.f. Patents, organizational expense, non-compete agreements, goodwill, and intangible assets shall be eliminated entirely.g. Past due receivables, unexplained receivables, unsecured loans and notes receivable, and the interest for these receivables shall be eliminated entirely.h. Officer and employee receivables, or other related party receivables, where it is determined that one party can exercise control or significant influence over the management and/or operating policies of the other party, shall be eliminated entirely. Furthermore, subsidiary or affiliate receivables, based upon the known facts and circumstances, that do not lead to the realization of value for use in the contractor's operations shall be eliminated in part or entirely.i. Prepaid expenses, deposits, prepaid taxes, deferred interest, and the excess of deferred tax assets over deferred tax liabilities shall be eliminated entirely.j. The book value of leasehold improvements and the excess of book value over liabilities for capital lease assets shall be eliminated entirely. Cash surrender value life insurance shall be eliminated entirely.k. Construction claims included as current assets associated with contracts shall be eliminated entirely.6. MCR. The calculated MCR shall be rounded off according to the following scale: Up to $500,000 - round off to nearest $10,000
Above $500,000 to $2,000,000 - round off to nearest $25,000
Above $2,000,000 - round off to nearest $50,000
(b) Bonding Capacity.1. Except for the provisions of sub-subparagraph 14-22.003(2)(a) 2.a., F.A.C., an applicant qualifying for a positive rating, or a contractor having a current certificate of qualification, has an Ability Score of 80 or higher, and has a Current Ratio Factor of at least 1.00, is eligible to request an increase in its MCR upon receipt of evidence of a current bonding capacity exceeding the calculated MCR from a surety company authorized to do business in the State of Florida. Such evidence shall be in the form of a Surety Commitment Letter and executed by an officer of the surety, authorized to bind the surety, with a power of attorney attached. The Surety Commitment Letter must be dated within four months of the request, and cover the certification period. The limit for an MCR issued on the basis of such bond commitment for applicants with an Ability Score of 80 through 90 will be determined by the following "Surety Capacity" formula: SC = SM x MCR x (CRV ÷ TRV)
In which: | | | | | | | |
SC | = | Surety Capacity | | |
SM | = | Surety Multiplier (Determined from Ability Score - Surety Multiplier Table as provided below) | | |
MCR | = | Maximum Capacity (Determined as provided in paragraph 14-22.003(2)(a), F.A.C.) | | |
CRV | = | Construction Revenues (As set forth in applicant's financial statements per subparagraph 14-22.002(2)(c) 2., F.A.C.) | | |
TRV | = | Total Revenues (As set forth in applicant's financial statements) | | |
Ability Score Surety Multiplier Table |
Ability Score | Surety Multiplier |
80 | 3.0 |
81 | 3.4 |
82 | 3.8 |
83 | 4.2 |
84 | 4.6 |
85 | 5.0 |
86 | 5.6 |
87 | 6.2 |
88 | 6.8 |
89 | 7.4 |
90 | 8.0 |
2. Except for the provisions of sub-subparagraph 14-22.003(2)(a) 2.a., F.A.C., the MCR for firms that have an Ability Score of 91 or greater will be the "Aggregate of Contracts" amount stipulated in the surety commitment letter. An MCR established through the use of a surety commitment letter shall not exceed the "Aggregate of Contracts" amount stipulated in the surety commitment letter.3. Except for the provisions of sub-subparagraph 14-22.003(2)(a) 2.a., F.A.C., use of a surety commitment letter to increase an applicant's MCR will only be considered if at the time of application the CRF is at least 1.00, as defined in subparagraph 14-22.003(2)(a) 3., F.A.C., and the applicant has an Ability Score of 80 or higher. No event(s) during the qualification period, subsequent to the ending date of the financial statements used for qualification, will be considered in determining an applicant's CRF. However, the Department will evaluate the general qualification factors listed in subsection 14-22.0041(1), F.A.C., in consideration of an increase to the applicant's MCR through the use of a surety commitment letter.(3) Classification of Work. (a) Applicant request for class(es) of work. Applicants shall indicate each class of work for which they request qualification. The Department will consider qualification only in the specific class or classes of work requested.(b) The major classes of work are as follows: 1. Bascule Bridge Rehabilitation.5. Computerized Traffic Control.6. Debris Removal (Emergency) Contractor Additional Experience, *Form 375-020-70, Rev. 02/10, hereby incorporated by reference.7. Drainage (includes all storm drains, pipe culverts, culverts, etc.).8. Electrical Work (includes roadway, bridge, and runway lighting).10. Flexible Paving (includes limerock, shell base and other optional base courses, soil-cement base, mixed-in-place bituminous paving, bituminous surface treatments and stabilizing).11. Grading (includes clearing and grubbing, excavation, and embarkment).12. Grassing, Seeding and Sodding.14. Hot in Place Resurfacing Contractor Additional Experience, *Form 375-020-71, Rev. 02/10, hereby incorporated by reference.15. Hot Plant-Mixed Bitum. Course (includes structural and surface courses).16. Intelligent Transportation Systems Contractor Additional Experience, * Form 375-020-73, Rev. 02/10, hereby incorporated by reference.17. Intermediate Bridges that contain none of the types of construction listed under Major Bridges and span lengths exceeding 50 feet (center to center of cap).18. Landscaping Contractor Additional Experience, * Form 375-020-72, Rev. 02/10, hereby incorporated by reference.19. Major Bridge - Bascule Spans.20. Major Bridge - Bridges of conventional construction which are over a water opening of 1,000 feet or more.21. Major Bridge - Cable Stayed Construction.22. Major Bridge - Cast in Place/Post-Tensioned/Super-Structure.23. Major Bridge - Concrete Segmental Construction.24. Major Bridge - Curved Steel Girders.25. Major Bridge - Multi-Level Roadways26. Major Bridge - Steel Truss Construction.27. Minor Bridges that contain span lengths not exceeding 50 feet (center to center of cap) and total length not exceeding 300 feet. A Minor Bridge shall not contain any type of construction listed under Major Bridges or Intermediate Bridges.28. Pavement Marking (includes delineators, traffic stripe painting, and thermoplastics).29. Portland Cement Concrete Roadway Paving.30. R&R Intermediate Bridges as defined in Number 17.31. R&R Major Bridge - Bridges of conventional construction which are over a water opening of 1,000 feet or more.32. R&R Major Bridge - Cable Stayed Construction.33. R&R Major Bridge - Concrete Segmental Construction.34. R&R Major Bridge - Multi-Level Roadways.35. R&R Major Bridge - Steel Truss Construction.36. R&R Major Bridge - Curved Steel Girders.37. R&R Minor Bridges as defined in Number 27.40. Other Work Classes Requested.(c) For work classes identified with an asterisk, provide the additional information as required in referenced forms.(d) For the Work Class of Debris Removal (Emergency), the contractor(s) shall complete the Application for Qualification and satisfy the criteria in Form 375-020-70, Rev. 3/10, incorporated herein by reference http://www.flrules.org/Gateway/reference.asp?No=Ref-03123 accompanied by a Reviewed Financial Statement that meets the requirements of subparagraphs 14-22.003(2)(a) 3. and 4., F.A.C., for Current Ratio Factor and Adjusted Net Worth.Fla. Admin. Code Ann. R. 14-22.003
Rulemaking Authority 334.044(2), 337.14(1) FS. Law Implemented 337.11, 337.14, 337.167 FS.
(Formerly Chapter 14-8), New 7-1-67, 8-20-68, 5-9-70, 1-6-72, 9-24-75, Formerly 14-22.01(4), Amended 3-23-79, 11-10-82, 8-25-83, 1-9-84, 10-1-85, Formerly 14-22.03, Amended 12-20-89, 4-22-92, 1-4-94, 7-1-95, 7-2-95, 7-8-01, 6-27-04, 5-15-06, 11-5-06, 10-10-10, 4-13-14.(Formerly Chapter 14-8), New 7-1-67, 8-20-68, 5-9-70, 1-6-72, 9-24-75, Formerly 14-22.01(4), Amended 3-23-79, 11-10-82, 8-25-83, 1-9-84, 10-1-85, Formerly 14-22.03, Amended 12-20-89, 4-22-92, 1-4-94, 7-1-95, 7-2-95, 7-8-01, 6-27-04, 5-15-06, 11-5-06, 10-10-10, 4-13-14.